Meet the new Winnebago Industries: How icon is embracing sleek vans to attract younger buyers

Winnebago's new Revel RV is designed for the outdoor enthusiast looking to leave the city and campground behind. Go inside the plant to see how it's built.
Brian Powers, bpowers@dmreg.com

Iowa-based Winnebago Industries announced Monday that it has acquired recreational boat builder Chris-Craft from United Kingdom private equity group Stellican Ltd. for an undisclosed amount.(Photo: Winnebago Industries/Special to the Register)

Winnebago has seen its fortunes rise during that time, aided by one of the U.S. economy's longest expansions ever. Winnebago earned more than $2 billion in fiscal year 2018 – nearly 10 times larger than 2009's earnings of about $211 million.

Its stock price is hovering around $21.50 a share after peaking at $56 a share in December 2017.

Of Winnebago's 4,600 employees, about 2,270 work in Iowa.

Analysts are enthused by the company's performance, even amid concern that Winnebago's motorized segment hasn't seen the same growth as other parts of the company's expanded product mix. And the wider RV segment remains vulnerable to a potential economic downturn.

Happe said that Winnebago, which long has enjoyed strong brand awareness with consumers, is beginning to realize its full potential since he arrived in January 2016.

"I am not a turnaround artist," Happe said in an interview. "I think this is more of a good-to-great journey than it is a turnaround."

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Workers install the moving bed frame on the Winnebago Revel at the companies Lake Mills factory on Wednesday, Dec. 5, 2018. The Revel, with its 4x4 and rugged nature has sparked the interest of outdoor enthusiasts and has helped the motor home manufacture rebound from poor sales during the recession. Brian Powers/The Register

Dustin James Leighton gets a tour of his new Winnebago Revel at Lichtsinn RV on Wednesday, Dec. 5, 2018, in Forest City. Leighton, a voice-over artist, spends a lot of time on the road and said he plans to turn part of the RV into a mobile studio so he can record from the road if he has too. Brian Powers/The Register

Workers install the moving bed frame on the Winnebago Revel at the companies Lake Mills factory on Wednesday, Dec. 5, 2018. The Revel, with its 4x4 and rugged nature has sparked the interest of outdoor enthusiasts and has helped the motor home manufacture rebound from poor sales during the recession. Brian Powers/The Register

Workers install a wiring harness on the Winnebago Revel at the companies Lake Mills factory on Wednesday, Dec. 5, 2018. The Revel, with its 4x4 and rugged nature has sparked the interest of outdoor enthusiasts and has helped the motor home manufacture rebound from poor sales during the recession. Brian Powers/The Register

The Winnebago factory in Lake Mills where the new Revel RV is made alongside other Class B RV's on Wednesday, Dec. 5, 2018, in Lake Mills. The Revel, with its 4x4 and rugged nature has sparked the interest of outdoor enthusiasts and has helped the motor home manufacture rebound from poor sales during the recession. Brian Powers/The Register

The Winnebago factory in Lake Mills where the new Revel RV is made alongside other Class B RV's on Wednesday, Dec. 5, 2018, in Lake Mills. The Revel, with its 4x4 and rugged nature has sparked the interest of outdoor enthusiasts and has helped the motor home manufacture rebound from poor sales during the recession. Brian Powers/The Register

Workers install the kitchen cabinet on the Winnebago Revel at the companies Lake Mills factory on Wednesday, Dec. 5, 2018. The Revel, with its 4x4 and rugged nature has sparked the interest of outdoor enthusiasts and has helped the motor home manufacture rebound from poor sales during the recession. Brian Powers/The Register

Workers install the kitchen cabinet on the Winnebago Revel at the companies Lake Mills factory on Wednesday, Dec. 5, 2018. The Revel, with its 4x4 and rugged nature has sparked the interest of outdoor enthusiasts and has helped the motor home manufacture rebound from poor sales during the recession. Brian Powers/The Register

The Winnebago factory in Lake Mills where the new Revel RV is made alongside other Class B RV's on Wednesday, Dec. 5, 2018, in Lake Mills. The Revel, with its 4x4 and rugged nature has sparked the interest of outdoor enthusiasts and has helped the motor home manufacture rebound from poor sales during the recession. Brian Powers/The Register

Workers install the moving bed frame on the Winnebago Revel at the companies Lake Mills factory on Wednesday, Dec. 5, 2018. The Revel, with its 4x4 and rugged nature has sparked the interest of outdoor enthusiasts and has helped the motor home manufacture rebound from poor sales during the recession. Brian Powers/The Register

The Winnebago factory in Lake Mills where the new Revel RV is made alongside other Class B RV's on Wednesday, Dec. 5, 2018, in Lake Mills. The Revel, with its 4x4 and rugged nature has sparked the interest of outdoor enthusiasts and has helped the motor home manufacture rebound from poor sales during the recession. Brian Powers/The Register

Workers make cutouts for various roof mounted accessories on the Winnebago Revel at the companies Lake Mills factory on Wednesday, Dec. 5, 2018. The Revel, with its 4x4 and rugged nature has sparked the interest of outdoor enthusiasts and has helped the motor home manufacture rebound from poor sales during the recession. Brian Powers/The Register

Dustin James Leighton gets a tour of his new Winnebago Revel at Lichtsinn RV on Wednesday, Dec. 5, 2018, in Forest City. Leighton, a voice-over artist, spends a lot of time on the road and said he plans to turn part of the RV into a mobile studio so he can record from the road if he has too. Brian Powers/The Register

Dustin James Leighton gets a tour of his new Winnebago Revel at Lichtsinn RV on Wednesday, Dec. 5, 2018, in Forest City. Leighton, a voice-over artist, spends a lot of time on the road and said he plans to turn part of the RV into a mobile studio so he can record from the road if he has too. Brian Powers/The Register

Dustin James Leighton gets a tour of his new Winnebago Revel at Lichtsinn RV on Wednesday, Dec. 5, 2018, in Forest City. Leighton, a voice-over artist, spends a lot of time on the road and said he plans to turn part of the RV into a mobile studio so he can record from the road if he has too. Brian Powers/The Register

Winnebago's new models jumpstart revival

Case in point: Winnebago's new 19½-foot Revel motorhome represents a huge departure for a brand that has long specialized in serving silver-haired retirees.

The sporty, Iowa-built coach was designed to attract younger buyers who want to explore off the grid but may have never considered an RV.

Since the Revel hit the market in September 2017, dealerships across the country have struggled to maintain their inventory.

"This is the very first month in 13 months that we’ve ever had inventory," said Ron Lichtsinn, owner of Lichtsinn RV in Forest City, Iowa. "And some of these people that originally ordered just took delivery in the last three months.

"They’re absolutely new entrants to a motorized camping lifestyle. They probably have never stepped foot in a campground and probably never will."

The success of the Revel reflects Happe's efforts to appeal to a broader base of customers – part of his marching orders from the board of directors that hired him as Winnebago's first outside CEO in decades.

While Winnebago has made big moves in the camping and marine sectors, Happe started with a more philosophical change: establishing a new corporate vision that set a common set of goals for employees.

"In essence, we didn't have a North Star," he told the crowd at the country club. "We did not know where we were going in three, five, 10 years."

The company in 2016 spent $500 million to purchase Grand Design, a fast-growing builder of towable RVs. And in June 2018, Winnebago purchased luxury boat-maker Chris-Craft for an undisclosed sum.

The first acquisition helped balance the company's portfolio: In 2015, 93 percent of Winnebago's revenues came from motorhome sales and only 5 percent from the more lucrative towable area. In fiscal year 2018, the company brought in 56 percent of its revenue from towables.

Seth Woolf, a research analyst at Northcoast Research, said Winnebago has made great strides over the last three years.

"But there's still room to go," he said.

Moreover, the overall market has softened, and many investors believe the economy is losing steam – which makes it tough for any stock in the space, he said.

"They’ve been outperforming significantly. Does that continue?" Woolf said. "Is this a speed bump we’ve been hitting, or is this a turn in the cycle?"

Evolving away from 'the Winnebago you know and love'

The appeal of Winnebago's name remains a powerful asset, company leaders say.

This is the story Bhattacharya tells to convey the bond consumers have with the RV maker:

While paying the bill for a recent meal, Bhattacharya's waitress noticed his Winnebago corporate credit card. She dropped everything to tell him about her time as a child camping in a Winnebago, fighting over bunk space and roasting marshmallows for s'mores with her cousins.

These sorts of interactions have taught Bhattacharya that this company does much more than assemble vehicles.

"What we actually do is we enable some of the most extraordinary adventures that people have in their lives," he said at the September conference. "And I think that's important to keep in mind because that emotional connection with the brand is something that's truly extraordinary and unique."

Winnebago will jealously protect its relationship with customers. But he said the company is evolving in a way that "might not be consistent with the Winnebago you know and love."

"This is a company that is an aggressive, growing company," he said. "It's on the move."

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The contemporary interior of Winnebago's new Horizon motorhome is pictured here. It's one of several new models recently introduced by the Iowa company. Contributed photo/Mike Houska for Winnebago Industries

A double vanity is pictured inside the bathroom of Winnebago's new Horizon motorhome, one of several new models recently introduced by the Iowa company. Special to the Register/Courtesy of Winnebago Industries